When you recognized that contingent workers were becoming a larger, more strategic and increasingly expensive part of your overall workforce, you outsourced responsibility for sourcing and managing these workers to a Managed Services Provider (MSP). You instantly found that you had faster access to better workers, your costs were lower, risks were eliminated, and your overall operation was more efficient. Right? Well, not for everybody.
Some companies find no significant improvement while their costs actually going up instead of down! What’s going wrong, and what can you do about it? Over the past two decades, we have spoken with dozens of companies who were disappointed in the results of their MSP programs. In exploring the issues, we nearly always find that the fault lies in neglecting the strategic elements of any MSP program.
Properly implemented, an MSP program is much more than the outsourcing the daily responsibilities of staffing agency management to third-party resources that reside at your facility or in local offices. It should be a significant change management initiative. You have hired experts in contingent workforce management, and you should expect these experts to deliver more effective ways to find great candidates, select and manage staffing agencies, adhere to market-based rates, and establish business practices that comply with corporate policies and government regulations. You should expect the following from your MSP provider:
Taking the evolving work environment into consideration, which is increasingly dependent on non-permanent workers, employers often have no option but to trust in professionals to manage their contingent workforce program. However, you do have a choice in the MSP that works for you. The MSP should continually be presenting greater insight into the effectiveness of your program, and suggesting avenues to better candidates while increasing return on investment. The right partnership will yield tremendous benefits.
Do write in and share the details if you have put together an efficient contingent workforce program which can be emulated by others.
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